InsurTech
InsurTech is the layer of technology-driven insurance carriers, brokers, MGAs and infrastructure platforms changing how policies are distributed, underwritten and serviced. The category took a heavy correction from 2022 - Lemonade, Root and Hippo all trade well below IPO levels - but the underlying loss ratios at the public names have moved sharply toward target levels and the embedded and SMB segments continued to grow. Next Insurance was acquired by Munich Re's ERGO for $2.6B in March 2025, the largest insurtech M&A on record.
The sector spans direct-to-consumer carriers, SMB and commercial digital insurers, embedded insurance distribution, digital brokers and aggregators, MGAs and specialty carriers, claims and underwriting AI tooling, telematics and usage-based insurance, and reinsurance and capital infrastructure.
Revenue comes from gross written premium with a target underwriting margin, commission income on distributed third-party policies, take-rate on embedded insurance flows, recurring SaaS contracts for claims and underwriting tools, and capital fee income at the MGA and reinsurance layer.
InsurTech is part of Fintech.
$12B
Global market size
39
Public companies
Key VC investors
Key strategic buyers
How InsurTech companies monetize?
InsurTech companies monetize through gross written premium, commission income and embedded distribution take-rate.
Gross written premium
Insurance premium collected, retained or ceded to reinsurers. The headline revenue line for full-stack carriers like Lemonade, Root, Hippo and Wefox.
Commission income
Take rate on third-party premium distributed through the platform. The core P&L line for digital brokers and price-comparison-driven insurers like ZhongAn and PolicyBazaar.
Embedded distribution take-rate
Commission earned on policies sold inside another brand's checkout. The model behind Cover Genius, Bolt and Sure.
MGA fee income
Underwriting fees and profit commission earned by managing general agents on behalf of capital partners. Used by specialty insurtechs like Coalition (cyber) and Pie Insurance (workers' comp).
Reinsurance & capital fees
Underwriting income and fund-style fees at the reinsurance and ILS layer. Hippo's Spinnaker, Lemonade's reinsurance treaty and the new Bermuda-based insurtech reinsurers sit here.
SaaS for insurers
Recurring software contracts sold to incumbents - claims AI, underwriting workbenches and policy admin. Tractable, Shift Technology and Snapsheet anchor the category.
InsurTech valuations in May 2026
Public InsurTech comps trade at 1.0x EV/Revenue. Median revenue multiple across InsurTech M&A deals was 0.7x in the last 12 months. Median revenue multiple across InsurTech VC rounds was 6.0x in the last 12 months.
1.0x
Median EV/Revenue as of May 2026 for public InsurTech companies
8.7x
Verisk Analytics is the highest valued public InsurTech company based on EV/Revenue (excluding outliers)
0.7x
Median EV/Revenue across InsurTech M&A deals in the last 12 months
6.0x
Median EV/Revenue across InsurTech VC rounds in the last 12 months
InsurTech market segments
InsurTech spans direct-to-consumer carriers, SMB and commercial digital insurers and embedded insurance.
Direct-to-consumer carriers
Full-stack digital insurers underwriting renters, home and auto in the US and EU. Lemonade (NYSE: LMND), Root (NASDAQ: ROOT) and Hippo (NYSE: HIPO) anchor the listed tier; Luko (acquired by Allianz Direct in 2024) and Wefox lead in Europe.
SMB & commercial digital insurers
Carriers and MGAs underwriting small-business policies via API and broker channels. Next Insurance (acquired by Munich Re ERGO for $2.6B in March 2025), Pie Insurance, Coterie and Embroker lead the US; Stello and Vouch cover specialty SMB.
Embedded insurance
Infrastructure embedding insurance into airline, retail and platform checkouts. Cover Genius is the global scale player; Bolt, Sure and Branch Insurance cover specific verticals.
Digital brokers & aggregators
Online brokers and comparison sites distributing third-party policies. EverQuote, SelectQuote and PolicyGenius (Zinnia) anchor the US; MoneySuperMarket, GoCompare and Confused.com lead the UK.
Specialty MGAs
Managing general agents underwriting cyber, parametric and niche commercial lines. Coalition leads cyber (last valued at $5B); Corvus (acquired by Travelers in 2024) and At-Bay compete; Descartes leads parametric.
Claims & underwriting AI
AI software for claims automation, fraud detection and underwriting decisioning sold to incumbents. Tractable (vehicle damage), Shift Technology (fraud) and Snapsheet (claims workflow) lead.
Telematics & UBI
Usage-based and behaviour-based auto insurance pricing. Root and Cambridge Mobile Telematics (Verisk) anchor the US; Octo Telematics and Movingdots serve Europe; Progressive Snapshot remains the incumbent reference.
Reinsurance & capital infrastructure
Reinsurance, ILS and capital-infrastructure platforms backing insurtech programs. Vesttoo collapsed in 2023; Ledger Investing, Convex and the new Bermuda-based reinsurance MGAs sit in the gap.
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Key InsurTech KPIs to track
Gross written premium, gross loss ratio, combined ratio and in-force premium are the metrics investors track in InsurTech.
| KPI | Definition |
|---|---|
| Gross written premium (GWP) | Total premium underwritten in the period. The headline scale metric for carriers, MGAs and brokers. |
| Gross loss ratio | Incurred losses divided by earned premium before reinsurance. The cleanest read of underwriting quality; insurtechs target 65-75% loss ratios at maturity. |
| Combined ratio | Loss ratio plus expense ratio. Below 100% indicates underwriting profitability before investment income; Lemonade and Root track this every quarter. |
| In-force premium | Annualised premium on active policies. The closest equivalent to ARR for an insurance carrier. |
| Policies in force | Active customer count. Reads scale independent of pricing changes. |
| Premium per customer | Average annualised premium per active customer. Reads product mix and segment moves (e.g. into bundles or homeowners). |
| Customer acquisition cost | Marketing and broker spend divided by gross new policies. Insurtech LTV/CAC discipline remains the key driver of the path to profitability. |
| Net revenue retention | Used by InsurTech SaaS vendors (Tractable, Shift Technology) and embedded-insurance distributors to track customer expansion. |
Main InsurTech players globally
The most active InsurTech companies and category leaders globally.
| Company | HQ | Overview |
|---|---|---|
Lemonade lemonade.com |  New York | AI-driven renters, home, auto and pet insurer (NYSE: LMND). Reached EBITDA positive on a quarterly basis in 2025 after sustained loss-ratio improvement; in-force premium passed $1.0B in late 2024. |
Root joinroot.com | Columbus | Telematics-priced auto insurer (NASDAQ: ROOT). Turned operating profit in 2024 after several years of restructuring; combined ratio dropped below 95% for the first time. |
Hippo hippo.com | Palo Alto | Smart-home insurance (NYSE: HIPO). Spun out the Spinnaker reinsurance program management business in 2024; ongoing pivot toward proactive risk management rather than pure underwriting. |
Next Insurance nextinsurance.com | Palo Alto | SMB-focused digital carrier. Acquired by Munich Re's ERGO for $2.6B in March 2025; serves 600,000+ small businesses across the US. |
Wefox wefox.com |  Berlin | European multi-line insurer and broker platform. Restructured in 2024 after a down round; pivoted from in-house carriers toward asset-light distribution and broker software. |
ZhongAn Online zhongan.com |  Shanghai | Largest digital insurer in China (HKEX: 6060). Operates across health, motor, lifestyle and credit insurance; gross premium passed RMB 30B in 2024. |
Coalition coalitioninc.com | San Francisco | Cyber insurance MGA and risk-management platform. Last valued at $5B in 2022; underwrites on behalf of Swiss Re, Vantage, Allianz and Lloyd's syndicates. |
Lemonade Pet (acquired Metromile/various) - Cover Genius covergenius.com |  Sydney | Embedded-insurance platform powering policies at Booking, eBay, Hopper and Skyscanner. Last valued at $1B+ in 2022; raised additional capital in 2024. |
Tractable tractable.ai |  London | AI for vehicle and property damage assessment sold to global insurers including GEICO, Tokio Marine and Mitsui Sumitomo. Last valued at $1B in 2022. |
Bought By Many (ManyPets) manypets.com | London | Pet insurance MGA and brand operating across the UK, US and Sweden. Last valued at $2B in 2021; refocused on the UK profitability core after exiting US underwriting in 2023. |
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Key InsurTech market trends
Munich Re acquiring Next for $2.6B, the path to underwriting profitability and embedded insurance hitting scale are reshaping InsurTech right now.
Munich Re acquires Next for $2.6B
ERGO (Munich Re) completed the $2.6B Next Insurance acquisition in March 2025, the largest insurtech M&A on record. The deal validated the SMB digital-carrier thesis and triggered RFP activity at Pie Insurance, Coterie and Embroker.
Path to underwriting profitability
Lemonade, Root and Hippo all reported combined ratios near or below 100% in 2024-25 after sustained pricing actions, geographic remix and reinsurance restructures. Equity narrative shifted from growth-at-any-cost to disciplined GWP growth on profitable books.
Embedded insurance hits scale
Cover Genius reported $1B+ GWP in 2024; embedded distribution at airline, e-commerce and platform partners now contributes meaningfully to short-duration premium pools. Bolt, Sure and Branch all expanded their carrier networks through 2024-25.
Cyber insurance discipline
Coalition, At-Bay and Corvus (now Travelers) pulled back on pricing and capacity through 2024 after the 2023 reinsurance reset. Cyber loss ratios stabilised below 65% and capacity returned in 2025, with Munich Re and Swiss Re re-entering capacity supply.
AI claims automation in incumbents
Allstate, GEICO and Liberty Mutual moved beyond pilots with Tractable, Shift Technology and Sprout.ai through 2024-25. Procurement now treats AI claims tooling as core stack rather than experimental, expanding the addressable enterprise market.
Climate-driven property re-pricing
State Farm, Allstate and Liberty Mutual withdrew or restricted homeowner coverage in California and Florida through 2024. Hippo, Kin and Branch are taking selective share where geocoded risk models can support pricing; reinsurance treaties continue to harden into 2025 renewals.
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